SHARES in In spite of the 35.4p surge to 364.2p for the share price, which added more than pound(s)4 billion to RBS's market capitalisation to take it to pound(s)41.6 billion, the stock remains well adrift of the 502p break-even price for the taxpayer's 81 per cent stake.
The bank was scheduled to put out its numbers on Friday but decided to release them early because they were more robust than the market had anticipated.
Although income in the first six months of the year actually fell, from pound(s)10.6 billion to just short of pound(s)10 billion, pre-tax profits were hiked 93 per cent from pound(s)1.37 billion to pound(s)2.65 billion.
RBS was helped by a major fall in impairment charges for bad loans, from pound(s)2.15 billion to pound(s)269 million, while also booking a pound(s)191 million gain on the disposal of the remainder of its stake in
Issues relating to possible foreign exchange manipulation, mortgage-backed securities in
RBS took pound(s)150 million of provisions in the period for PPI to take its total hit from the scandal to pound(s)3.25 billion.
There was also a further pound(s)100 million set aside for compensation to companies which took interest rate swap loans taking RBS's provisions for that to pound(s)1.3 billion.
Total operating expenses were reduced from pound(s)7.75 billion to pound(s)7.1 billion as a result of lower litigation and conduct costs, pound(s)250 million against pound(s)620 million.
However the bank's continuing restructuring push led to pound(s)514 million of cost in the period to
There was also a positive update on the lender's internal bad bank which is now expected to cost between pound(s)2.5 billion and pound(s)3 billion, below initial predictions of up to pound(s)4.5 billion.
As well as that RBS was able to recover some of the loan losses from there after selling assets at better prices than anticipated.
He pointed out it has struck a deal with post offices to allow customers to perform simple banking transactions there while also investing in more mobile vans to service remote areas of
The chief executive also confirmed RBS is investing heavily in its digital services.
On the Scottish independence referendum,
In spite of the 35.4p surge to 364.2p for the share price, which added more than pound(s)4 billion to RBS's market capitalisation to take it to pound(s)41.6 billion, the stock remains well adrift of the 502p break-even price for the taxpayer's 81 per cent stake.